Investment Memorandum

Investment Memorandum - Investment Memorandum is a letter that commits an individual to acquire a company's securities and describes the terms of the deal. An investment memorandum is pretty much like a business plan, only written. It explicitly has an eye towards securing investors, whereas a business plan then written without this purpose. In the investment cycle, signing an investment memo or the term sheet comes after a review of the business plan and an informal agreement that you will potentially have something to gain. After signed, you proceed with in depth due-diligence and prepare all of the legal documents for the signature.